Nowhere to Hide in 2018

January 04, 2019 | Derek Schmidt, CFA, CAIA, Senior Research Analyst, Private Equity

As we enter 2019, we look back on what was a pretty poor year for investors. There was just nowhere to hide in 2018 as a volatile 4th quarter turned all major indices negative. The downward catalyst occurred when Federal Reserve Chair Jerome Powell said interest rates were “a long way” from what he considered neither stimulative nor restrictive.

For the year, the S&P 500 lost 4.4%, the Russell 2000 lost 11%, and emerging markets (as measured by the MSCI EM index) lost 14.6%. These losses came mostly as volatility spiked with the CBOE Volatility Index up 132% in 2018. Strong market fundamentals have largely been overshadowed by fear as global growth concerns, trade, and rising interest rate worries continue to pressure markets. This broad market correction has been historically unusual, but years with broadly poor returns from a majority of indices are typically followed by a positive year as investors find value in market opportunities.

Print PDF

The opinions expressed herein are those of Marquette Associates, Inc. (“Marquette”), and are subject to change without notice. This material is not financial advice or an offer to purchase or sell any product. Marquette reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs.

 

Derek Schmidt, CFA, CAIA
Senior Research Analyst, Private Equity

Get to Know Derek

Related Content

ESG Assets Continue Their Dramatic Rise: Increased demand has led to a surge in U.S.-based ESG assets in recent years

03.14.2019

ESG Assets Continue Their Dramatic Rise

The demand for — and supply of — ESG investment opportunities has surged over the past several years. This week’s chart depicts…

03.08.2019

Brexit – Deal or Delay?

With merely 21 days left before Britain is due to leave the European Union, global investors are keenly watching their…

Will Assets Flow to Water Infrastructure Opportunities chart displaying projected growth in water and wastewater investment gap

02.28.2019

Will Assets Flow to Water Infrastructure Opportunities?

U.S. water infrastructure provides and treats around 355 million gallons of water per day to support cooking, bathing, and productivity…

Slower Earnings Growth in 2019 chart displaying effects of 2018's tax cuts -- that is, strong growth in corporate earnings

02.21.2019

Slower Earnings Growth in 2019?

With the Tax Cut and Jobs Act (“TCJA”) now a little over a year old, this week’s chart looks at…

02.14.2019

Can a Government Shutdown Slow the IPO Market?

Companies have been staying private longer, but expectations for Initial Public Offerings (IPOs) in 2019 are high. Uber and Lyft…

Can the PG&E Bankruptcy Create Profits for Hedge Funds chart

02.08.2019

Can the PG&E Bankruptcy Create Profits for Hedge Funds?

This week’s chart of the week examines the price performance of Pacific Gas and Electric (“PG&E”) Corporation’s public debt and…

More articles

Subscribe to Research Email Alerts

Research Email Alert Subscription

Research alerts keep you updated on our latest research publications. Simply enter your contact information, choose the research alerts you would like to receive and click Subscribe. Alerts will be sent as research is published.

We respect your privacy. We will never share or sell your information.

Thank You

We appreciate your interest in Marquette Associates.

If you have questions or need further information, please contact us directly and we will respond to your inquiry within 24 hours.

Contact Us >